Egypt, Saudi Arabia sign LE 250mln deal to finance entrepreneurship, ride sharing projects
Egypt and Saudi Arabia signed on Friday two agreements with a total value of LE 250 million to finance Egyptian entrepreneurship and car ownership in the ride-sharing sector, Saudi state Press Agency reported on Monday.
According to a statement issued by the Ministry of Investment and International Cooperation, the first agreement, worth LE 150 million, was signed between the Ministry, the Saudi Grant Committee and the Enmaa Company.
The second agreement, worth LE 100 million, was signed between the Ministry and a subsidiary of EFG Hermes, with the presence of representatives from ride-sharing companies Uber and Careem.
The projects are part of the implementation of Egypt’s new investment law and aims to create job opportunities and support entrepreneurship and small investors, read the statement.
Minister of Investment and International Cooperation Sahar Nasr said that the Ministry intends to cooperate with Egypt’s development partners and the private sector in order to support entrepreneurs, which is not limited to financing but also includes vocational training.
http://www.egyptindependent.com/egy...nance-entrepreneurship-ride-sharing-projects/
Millions invested to fund Hurghada zoo, other projects
Dr. Huda Jalal Yassi, chief of the Arab Women Investors Union, spoke last month of governmental plans to establish several development projects in the Red Sea Governorate’s capital city Hurghada, including a recreational zoo, a healthcare center for medical tourism, and a fish farm.
During October’s Sharm el-Sheikh conference on international cooperation towards sustainable development, which called for funds from Arab and African investors, Yassi affirmed that Egyptian, Arab, and Swiss investors will inject LE 640 million to construct the healthcare center, while Egyptian, Nigerian, and Emirati investors will provide LE 450 million to build the zoo.
Arab and South Korean investors will allocate LE 440 million to build an academy providing training for those working in the tourism industry and Yassi indicated that foreign investors will allocate LE 150 million to construct a fish-producing farm.
On top of this, foreign investors will allocate LE 750 million for three Iraqi development projects, building factories to produce fish, refrigerators, and stainless steel tableware. Additionally, in Djibouti, investors will allocate LE 260 million to construct a sweet-making factory, a food factory, and a fish-farm.
Meanwhile, Ahmed Abdallah, governor of the Red Sea, said his Governorate utilizes only seven percent of the Red Sea ports, despite four million tourists visiting the area each year. As the country seeks to boost its tourism industry, he added that Hurghada airport has the capacity to receive 13 million tourists annually.
http://www.egyptindependent.com/millions-invested-to-fund-hurghada-zoo-and-other-projects/
US-Saudi consortium to invest $3bn in amusement park complex at Egypt’s Matrouh
A consortium of unnamed US and Saudi companies are investing US $3 billion in an amusement park complex in the Northwestern Egyptian governate of Matrouh, Governor Alaa Abu Zeid announced at a Sunday press conference.
Abu Zeid, however, did not provide details about in the investors’ identity or what their project may specifically entail.
In August, Minister of Investment, Sahar Nasr, began promoting the Western Egypt Development Project, outlining that it will include an investment zone, a resort complex, and urban development projects. The project was open for investors in the Matrouh governate.
The project was launched by President Abdel Fattah al-Sisi in July during the fourth National Youth Conference held in Alexandria. It will be the second development project in the area beside the New Alamein City.
The project will be built upon a space of 250,000 feddans (1 feddan = 1,025 acres.) It will be executed in three phases over 10 years, and will cost US $10 billion in total. The first phase is scheduled for completion within two years, costing US $2 billion.
The project is expected to create 25,000 jobs and generate employment for hundreds of thousands.
Abu Zeid added that investors at an economic conference agreed upon a further 21 investments for projects in Matrouh, worth EGP 165 billion.
http://www.egyptindependent.com/us-...-in-amusement-park-complex-at-egypts-matrouh/
DP World to Develop Economic Zone in Egypt
DP World has signed a partnership agreement to develop an integrated industrial and residential zone at Sokhna in Egypt.
The project will complement the Egyptian government’s plans to develop the Suez Canal Corridor.
It will cover 95 square kilometres and include industrial and residential areas coupled with the development of Sokhna Port, increasing its capacity and linking it to the industrial zone.
DP World will manage the joint venture, scheduled for the first quarter of 2018, in a stake split of 51% to SCZone and 49% to DP World.
It will feature a range of investment incentives and encourage innovation using best international practice in the management of Special Economic Zones (SEZs), free zones, ports, and logistic hubs based on DP World’s global experience.
The project will also promote the development of small and medium-sized enterprises (SMEs), create job opportunities and provide training for young Egyptians adding value to the economy.
The residential area will be able to accommodate 500,000 people.
Admiral Mohab Mamish, Chairman of the Suez Canal Authority and Chairman of the Suez Canal Economic Zone (SCZone), and Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, signed the agreement in the presence of Sherif Ismail, the Prime Minister of Egypt.
Bin Sulayem, said: “This partnership demonstrates the commitment of DP World to support the growth of Egypt’s economy and reflects the trust we place in the determination of the government to make the project a success.
“The development of the zone will support the sustainable growth of the country and help it attract more business investment.
“It will also help transform the Suez Canal into a major trade and business hub in the region, given its strategic location and role as an artery for global trade.
“We are looking forward to working with the SCZone through this joint venture to develop the project using our international expertise and know-how of trade and logistics across six continents, to add value to the Egyptian economy and leave a legacy for future generations.”
Admiral Mohab Mamish, Chairman of the Suez Canal Authority and Chairman of the Suez Canal Economic Zone (SCZone), said: This signing builds on the historic relations between Egypt and the UAE and is aligned with the vision of President Sisi for the development of trade in the region.
“The project includes a comprehensive economic zone in Sokhna including an industrial free zone and a number of development projects that will boost the national economy and create jobs for Egyptian youth.
“Today’s signing concludes months of work of the joint committee that has been working closely with the leadership of both countries and consultants to make this happen. This is an important step in Egypt’s industrial and economic growth journey, while taking advantage of the strategic location of the Suez Canal.”
https://www.porttechnology.org/news/dp_world_to_develop_economic_zone_in_egypt
Bombardier inks $1.1 billion deal with EgyptAir for C Series jets
The new jets will enable the Cairo-based carrier to expand its network
EgyptAir, the North African country's national carrier, inked a $1.1 billion deal with Canada's Bombardier for 12 mix-range jets with the option to buy additional aircraft.
The agreement includes a firm order for 12 CS300 jets with purchase rights for another 12 aircraft, which would boost the value of the agreement to $2.2 billion if exercised, the company said on Tuesday.
"We selected the C Series aircraft because its excellent range will allow us to best serve domestic and regional destinations, including neighbouring Arab cities, the Middle East as well as European destinations," said Safwat Musallam, chairman and chief executive of the the Cairo-based carrier.
The expansion by the Egyptian carrier will be a boost to the country's tourism industry impacted by the devaluation of the pound and terrorism in the Sinai peninsula.
The North African country'a economy is on the rebound. The Egyptian economy picked up in the fiscal year ending June 2017, growing by 4.2 per cent, beating projections of 3.5 per cent growth, according to the International Monetary Fund. The Washington-based organisation agreed earlier this month to the disbursement of a $2bn loan after a review of Egypt’s economic reforms.
The new aircraft will be used by EgyptAir Express and the carrier expects to be the regional launch customer for the jets in the region. The planes will be will be used to replace small, narrow body aircraft in the fleet as part of the airline’s strategic plan, Musallam said.
In October, Airbus agreed to buy a majority stake in the Canadian plane-maker C Series programme. The CS300, larges of two versions made by the Montreal-based company has a list price of $89.5 million before discount. The aircraft can carry 130 to 160 passengers.
"We look forward to expanding our network with the CS300," Musallam added.
https://www.thenational.ae/business...deal-with-egyptair-for-c-series-jets-1.675671
Egypt has attracted $18b of such inflows since the flotation of the EGP: Jim Cowles
Jim Cowles, CEO of Citibank in Europe, Middle East, and Africa (EMEA), expressed his optimism towards the growth of the economy in Egypt and the opportunities it offers for financial transactions.
Jim Cowles, the CEO of Citibank in Europe, the Middle East, and Africa (EMEA), told Daily News Egypt that Citi has played a key role in attracting foreign portfolio investments into the Egyptian treasury bill market via its direct contacts and active marketing role with foreign investors. “Egypt has attracted an estimated $18bn of such inflows over the past year since the flotation of the EGP, and Citi has played a role in around 60-65% of these inflows”
He added in a response to a question from Daily News Egypt at the EMEA summit, held between 13 and 14 November in London, that Citi enjoys a close relationship with the government of Egypt and is one of the four lead managers of the sovereign Eurobond, through which Egypt has been able to raise $7bn for budget funding during 2017, including an unprecedented 30 year tranche”.
When we look now to the economy of Egypt, the reforms that the government has taken during the last year, “the bold decisions”, we find a good area for transactions, Cowles said.
“The government has really taken some unpopular decisions, such as the restructure of subsidies, the flotation of the Egyptian pound, but it was important to the recovery of the economy”, he said. He added that Citi group aims to develop its activities in Egypt, “because there is a real potential there.”
“I know Citi group has sold its consumer units in Egypt, but that’s because we want to focus in presenting a unique and different service there,” explained Cowles, going on to say, “but it was a right decision and when I look back I still believe that this was a right one. They are many clients for consumer business in Egypt. And we want to present something unique, that’s why Citi group had focused on transactions with governmental institutions since then”
Citi signed in 2015 an agreement with Commercial International Bank (CIB) to sell its consumer banking business in Egypt. Approximately 900 full-time consumer banking and contract employees, eight Citi branches, and Citi’s ATM network in Egypt has been transferred to CIB upon closing the deal.
Citi said then that it aims to focus on expanding the services it offers to Egyptian corporations, banks and public sector clients, as well as continuing to service its multinational clients with operations in Egypt, along global investors.
This decision was in line with Citi’s global strategy of focusing their resources on those sectors where it has a competitive advantage, including their institutional franchise in Egypt.
Egypt is a part of the Middle East and the African area which, as the CEO of EMEA said, which has a lot of potential in the future.
For the Middle East, the price of oil has dropped in this last year and these countries had to come up with different fiscal plans and social programs; “fertile soil” for financial advice and transactions.
Citi has received a CMA License in Saudi Arabia in April 2017. Citigroup Saudi Arabia provide a full range of investment banking, debt and equity capital markets, and securities research capabilities to its local and international institutional clients.
“Saudi Arabia is a regional economic leader and a strategically important market for Citi. We are very proud of our long association with Saudi Arabia and are delighted at the opportunity to establish a presence in the Kingdom,” said Cowles, mentioning that the political turbulences in Saudi Arabia didn’t affect their business there.
Speaking about Africa, Cowles said some countries on the continent are supposed to realise growth between 5 and 7%, that means a growth of 9 to 12% of financial services, “a significant area force where Citigroup aims to multiply its activities during to the upcoming period.”
https://dailynewsegypt.com/2017/11/...ws-since-the-flotation-of-the-egp-jim-cowles/
Egypt to add 11 power plants to national grid starting 2018: Mohamed Shaker
The new power projects will add 6,000 jobs, supply 350,000 homes with electricity
Electricity Minister Mohamed Shaker said that the country will add 11 new power plants to the national power grid starting at the beginning of next year.
Shaker, who was speaking on the sidelines of Akhbar Al Youm economic conference, added that that national grid currently consists of 18 power plants.
“The new power plants which are scheduled to be synchronised to the national power grid have been built in the North Coast and Upper Egypt,” Shaker explained.
Shaker also said that the three solar power plants in the Benban area near Aswan will be among mega projects around the globe to produce energy from clean sources.
The capacity of each plant will be 50 MW at a total of $200m, funded through a partnership between the Ministry of Electricity, three international companies, and the World Bank, Shaker said.
The minister added that the establishment of the stations comes in light of a focus on the development of renewable energy, which amounts to 20% of the total energy generated in Egypt.
“We aim to make clean energy represent 37% of our total power production,” he stated.
The construction of the three plants will be completed in the fourth quarter of next year, with the expectation they will reduce carbon emissions, according to Shaker.
The total cost of renewable energy projects, including solar and wind, to be established in a partnership with the private sector is EGP 6 bn, he revealed.
These projects aim to produce a total of 4,300 MW.
The Ministry is considering the construction of a 2,400 megawatts pumping station at Mount Ataqa, the minister added.
The new power projects will help in creating 6,000 jobs and supply almost 350,000 homes with power, according to Shaker.
As of 2014, Egypt has been looking to substantially diversify its energy projects.
The mix includes gas-fired and coal-fired projects, alongside a number of solar and wind projects under the build, own, operate model.
The government introduced a Feed-in-Tariff (FiT) program and is in talks to move ahead with the 4.8 GW nuclear power plant at Dabaa.
